Introduction: The Central Board of Direct Taxes, under the Ministry of Finance, issued an order on March 27, 2024, pertaining to information sharing under section 138(1)(a) of the Income-tax Act, 1961. This order designates the Director General of Income-tax (Systems), Delhi, as the specified authority for furnishing information to the Government of Uttar Pradesh, as notified by Notification No. 35/2024 dated March 22, 2024.
Detailed Analysis:
1. Authority Designation: The order establishes the Director General of Income-tax (Systems), Delhi, as the designated authority for sharing information with the Government of Uttar Pradesh. This authority is empowered under clause (a) of subsection (1) of section 138 of the Income-tax Act, 1961.
2. Mechanism of Information Sharing: The order outlines the mechanism for sharing information between the Government of Uttar Pradesh and the Director General of Income-tax (Systems), Delhi. It involves the Government of Uttar Pradesh furnishing the PAN (Permanent Account Number) of the relevant citizens along with the Assessment Year(s) to DGIT (Systems), Delhi. Subsequently, DGIT (Systems), Delhi, responds to the Government of Uttar Pradesh with flags indicating the income-tax payer status based on the shared PAN and Assessment Year(s).
3. Frequency and Mode of Exchange: The frequency of furnishing responses and the mode of exchange of information are subject to determination by DGIT (Systems), Delhi, in consultation with the requesting Government. The exchange of information is facilitated through Application Programming Interface (API), ensuring efficient and secure communication.
4. Memorandum of Understanding (MoU): To streamline the process, a Memorandum of Understanding (MoU) will be established between the Director General of Income-tax (Systems), Delhi, and the Notified Authority of the Government of Uttar Pradesh. This MoU will encompass various aspects such as data transfer modes, confidentiality maintenance, data preservation, and disposal protocols. The timeline for information furnishing will also be delineated in the MoU.
Conclusion: In conclusion, the order issued by the Central Board of Direct Taxes delineates the framework for sharing information between the Government of Uttar Pradesh and the Director General of Income-tax (Systems), Delhi, in accordance with the provisions of the Income-tax Act, 1961. This initiative aims to enhance cooperation and facilitate efficient exchange of relevant data while ensuring adherence to confidentiality and data protection protocols.
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F. No. 22S/196/2023-ITA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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New Delhi, the 27th March, 2024
Order under section 138(1)(a) of the Income-tax Act, 1961
Central Board of Direct Taxes, in exercise of powers conferred under clause (a) of subsection (1) of section 138 of lncome-tax Act, 1961 (‘the Act’), hereby directs that Director General of Income-tax (Systems), Delhi shall be the specified authority for furnishing information to Principal Secretary, Planning Department, Government of Uttar Pradesh as notified by Notification No. 35/2024 dated 22.03.2024 for the purposes of said clause.
2. The mechanism of sharing of information shall be as under:
i. Government of Uttar Pradesh shall furnish the PAN of the relevant set of citizens along with the Assessment Year(s) to DGIT (Systems), Delhi.
ii. DGIT (Systems), Delhi shall furnish the response to Government of Uttar Pradesh in the form of flag “Yes/No/Not Available” based on the income-tax payer status of the shared PAN and Assessment Year(s).
iii. The frequency of furnishing such response shall be decided by the DGIT (Systems), Delhi in consultation with the requesting Government.
iv. Mode of exchange of information shall be through API.
3. To facilitate the process of furnishing information, Director General of Income-tax (Systems), Delhi would enter into a Memorandum of Understanding (‘MoU’) with Notified Authority of Government of Uttar Pradesh, which inter alia would include the mode of transfer of data, maintenance of confidentiality, mechanism for safe preservation of data, weeding out after usage, etc. The timeline for furnishing information shall also be decided by Director General of Income-tax (Systems), Delhi in consultation with the notified authority and included in the said MoU.
4. A copy of MoU shall be forwarded to this Division for record purposes.
(Dr. Castro Jayaprakash T.)
Under Secretary to the Government of India
Copy forwarded to:
1. PPS to FM/Dir (FMO)/OSD TO MoS (R)/PPS to RS/PPS to chairman, CBDT and all Members, CBDT
2. Principal Secretary, Planning Department, Government of Uttar Pradesh
3. DGIT (Systems), New Delhi
4. All Pro CCsIT/DGsIT for kind information
5. Web Manager, for placing on the website www.incometaxindia.gov.in
6. Guard File
(Dr. Castro Jayaprakash T.)
Under Secretary to the Government of India
